A results-day surge for HSBC shares today helped the FTSE 100 index set a new record.
London’s top flight also benefited from the calming of Wall Street tech sector nerves ahead of tonight’s Nvidia results.
Guinness and Johnnie Walker drinks giant Diageo today slashed its dividend payout alongside weaker sales guidance.
FTSE 100 Live Wednesday
- HSBC results beat hopes
- Diageo slashes dividend
- Energy bills to fall
Market update: HSBC leads FTSE 100 to new record, Diageo down 6%
09:59 , Graeme EvansHeavyweight HSBC today led the charge of the FTSE 100 index as London’s top flight benefited from calmer market conditions to post a new record of 10,785.55.
A strong Wall Street handover after traders softened their AI disruption fears meant Tokyo’s Nikkei 225 also jumped 2.2% to set an all-time high.
The FTSE 100 index put on 0.9% or 95.07 points, with mining stocks key to the performance after gains of 2% for Anglo American and Glencore.
HSBC, which is the second largest stock in the top flight, jumped 5% or 63.2p to a record 1354.6p after the lender impressed with its outlook in annual results.
The guidance included a return on tangible equity of 17% or better for the next three years, alongside year-on-year growth in revenues.
The targets were disclosed alongside fourth quarter reported profits of $6.8 billion, which came in well ahead of the City consensus of $5.8 billion.
The other results-day risers in the FTSE 100 index were St James’s Place and the insurer Hiscox after they rallied 5% - up 59p to 1318.5p and 79p to 1541p respectively.
Relx shares also continued their recovery from AI disruption fears, boosted by last night’s disclosure that LexisNexis is to integrate Anthropic’s AI legal plugin. The stock rose 4% or 97p to 2370p.
At the bottom of the FTSE 100 index, disappointment over a big dividend cut and weaker sales guidance meant Diageo shares slid 6% or 117.5p to 1756.5p.
The results, which were the first under the leadership of former Tesco boss Dave Lewis, showed a half-year operating profit down 1.2% to $3.1 billion.
He said the dividend reset to an interim 20 US cents a share would provide the financial flexibility for the Guinness and Johnnie Walker firm to rebuild. Shares had been at a multi-decade low of 1577p in early January.
Haleon shares dropped 3% or 13.9p to 391.8p after the Sensodyne and Panadol firm said a weak cold and flu season and low consumer confidence in North America impacted its 2025 performance.
The consumer healthcare group reported organic revenue growth of 3%, offset by strong margin improvement as adjusted operating profit rose 10.5% to £2.5 billion.
The former GSK and Pfizer joint venture reiterated medium-term guidance, with revenues growth for 2026 expected to be between 3% and 5%.
Wayve raises £1.1bn ahead of robotaxi launch
08:59 , Graeme EvansWayve, the self-driving car firm set to launch robotaxis on UK roads, has raised $1.5 billion (£1.1 billion) from investors including Uber, Microsoft and chip giant Nvidia.
The Series D funding round, which is one of the largest ever for a British start-up, values the London-based business at around 8.6 billion dollars (£6.4 billion).
Major car manufacturers Mercedes-Benz, Nissan and Stellantis have also injected cash as part of the deal.
Haleon revenues growth disappoints, shares fall 4%
08:52 , Graeme EvansPanadol and Sensodyne firm Haleon today said a weak cold and flu season and low consumer confidence in North America impacted its 2025 performance.
The consumer healthcare group reported organic revenue growth of 3%, which was below its medium-term expectations.
This was offset by strong gross margin improvement as adjusted operating profit rose 10.5% to £2.5 billion.
The company reiterated medium-term guidance, with revenues growth for 2026 expected to be between 3% and 5%.
Chief executive Brian McNamara said: “Our brands again proved their resilience, and we continued to outperform the market, with 60% of the business gaining or maintaining share this year.
Haleon’s FTSE 100-listed shares fell 4% or 15.8p to 389.9p.
FTSE 100 rallies to new record, Diageo and Haleon fall
08:10 , Graeme EvansHSBC shares have risen 4% or 54p to 1345.4p after the banking giant upgraded guidance alongside better-than-expected fourth quarter results.
Diageo shares fell 6% or 116.5p to 1757.5p, reflecting the impact of a big dividend cut and the company’s weaker sales guidance for the 2025/26 year.
FTSE 100 index is 0.8% or 82.51 points higher at 10,763.10, a record high after London’s top flight benefited from a strong Wall Street handover.
Consumer healthcare group Haleon fell 5% and St James’s Place rose 5% following the release of their annual results.
Heathrow pays dividend, earnings down by a third
07:57 , Graeme EvansHeathrow today paid out dividends to shareholders for the first time in five years, despite reporting a big drop in earnings for 2025.
The west London airport reported pre-tax profits of £575 million for 2025, down 37.3% from £917 million in 2024.
Heathrow’s board decided to pay dividends to shareholders totalling £550 million during the last financial year.
The airport’s owners largely consist of overseas investors, led by private equity giant Ardian and the sovereign wealth funds of Qatar and Saudi Arabia.
HSBC chief executive gets £6.6m remuneration
07:54 , Graeme EvansHSBC today disclosed that chief executive Georges Elhedery received total remuneration of £6.6 million in relation to the 2025 financial year.
The package included an annual bonus of cash and deferred shares worth £3.6 million, which was based on 80.13% of the maximum opportunity.
The 45% vesting of long-term incentives contributed £1.2 million to the figure.
His base salary for 2026 is unchanged at £1.5 million.
The awards follow a reported profit for 2025 of $29.9 billion, which fell $2.4 billion on a year earlier due to a $4.9 billion year-on-year net impact from one-off items.
Energy bills set to fall by average 7%
07:24 , Graeme EvansThe price most households pay for energy will fall by 7% from April 1, Ofgem said today.
The regulator’s price cap will drop from the current £1,758 to £1,641 – a reduction of around £10 a month for the average household using both electricity and gas.
The g drop follows an announcement by Chancellor Rachel Reeves in the November Budget that certain levies on bills will be removed from April, easing the burden on households by about £150 a year.
Wholesale prices – which continue to make up the largest portion of the bill - are currently stable and have fallen by 6% over the past three months.
Diageo cuts dividend in half-year results
07:16 , Graeme EvansDiageo today halved its interim dividend as part of efforts by the Guinness and Smirnoff drinks giant to create more financial flexibility.
New chief executive Dave Lewis said: “ We are confident that this is the right action which will ensure that Diageo can reinforce its position as the leading international spirits business and drive stronger shareholder value over the coming years.”
The FTSE 100 company declared an interim dividend of 20 US cents, down from 40.5 US cents a year earlier. It said it is committed to growing shareholder distributions, with a minimum floor set for the dividend of 50 US cents each year.
The move came as Diageo announced a “mixed” performance for the six months to 31 December, with operating profit down 1.2% to $3.1 billion.
Diageo also revised its guidance for organic net sales in the current financial year, which is now set to be 2-3% lower given further weakness in the US spirits market.
A few weeks into his tenure, the former Tesco boss said he “can already see significant opportunities” for Diageo to act more decisively to enhance its competitiveness and broaden the portfolio offering.
He said his immediate priorities are to build competitive category strategies, improve customer focus and redesign the Diageo operating framework.
HSBC shares rise on strong Q4 results, hails strong momentum
07:09 , Graeme EvansHSBC shares today rose 3% in Hong Kong dealings after the Asia-focused banking giant today reported a better-than-expected fourth quarter performance.
Strength in wealth management underpinned a rise in profit to $6.8 billion for the final three months of the year. This compared with the City consensus of $5.8 billion and represented a rise of $4.5 billion due to the impact of below-the-line charges.
Reported profit before tax for 2025 decreased by $2.4 billion to $29.9 billion, mainly due to a $4.9 billion year-on-year net adverse impact from one-off items.
The bank announced a fourth interim dividend of 45 US cents a share, resulting in a total of 75 US cents a share for 2025.
It is targeting year-on-year growth in revenue from 2026 to 2028, rising to 5% growth in 2028 compared with 2027. The bank intends to maintain its dividend payout ratio target of 50% in the next three years.
Chief executive Georges Elhedery said: “2025 was a year of decisive action and swift execution, which is reflected in our strong performance.
“Each of our four businesses performed well and we have strong momentum across the bank.”
FTSE 100 seen higher, Wall Street tech stocks rally
06:57 , Graeme EvansThe Nikkei 225 today set a record high as a recovery for US technology stocks helped the Tokyo benchmark to jump by more than 2%.
The Nasdaq Composite had earlier closed 1% higher, alongside gains of about 0.8% for the S&P 500 index and Dow Jones Industrial Average.
The FTSE 100 index is also set for an improved session after last night closing broadly unchanged for a second session in a row - down 4.15 points at 10,680.59.
IG futures point to a rise of about 0.4% or 47.9 points at today’s opening bell, while Wall Street markets are seen flat ahead of tonight’s Nvidia results.
The price of gold is up 1% at $5191 an ounce and Brent Crude 0.5% higher at $71.13 a barrel.
